Are you ready to buy health insurance? Then it’s best to become familiar with a few important terms that your insurance agent is likely to use. The deductible is the amount of money that you will pay first on any insurance claim, before your insurer pays their part. Co-payments are payments you are responsible for in addition to any deductible and they usually apply to certain prescription drugs or medical procedures. Out-of-pocket expenses are exactly that, money that you pay out of your pocket for deductibles, co-payments or expenses that exceed the coverage in your insurance policy. The lifetime maximum is the total amount your insurance company will pay out on your behalf over the lifetime of the policy. Usually, individual family members are subject to his or her own lifetime maximum and there may be a cumulative maximum for the entire family.
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